Enter your total taxable supplies and imports over the past 12 months (or expected over the next 30 days)
Mandatory Threshold
AED 375,000
Voluntary Threshold
AED 187,500
Eligible for Voluntary Registration
Your annual turnover of AED 300,000 exceeds the voluntary threshold of AED 187,500 but is below the mandatory threshold of AED 375,000. You may choose to register voluntarily.
Voluntary Threshold
AED 300,000 / AED 187,500
Threshold exceeded - eligible for voluntary registration
Mandatory Threshold
AED 300,000 / AED 375,000
AED 75,000 below mandatory threshold
Understanding UAE VAT registration
When must I register for VAT?
You must register for VAT if your taxable supplies and imports exceed AED 375,000 over the previous 12 months, or if you anticipate they will exceed this amount in the next 30 days. This is the mandatory registration threshold set by the Federal Tax Authority (FTA). You must apply for registration within 30 days of exceeding the threshold. Late registration may result in penalties of AED 20,000.
Can I register voluntarily?
Yes, if your taxable supplies and imports (or taxable expenses) exceed AED 187,500 over the previous 12 months or are expected to exceed this in the next 30 days, you may voluntarily register for VAT. Voluntary registration allows you to reclaim input VAT on business purchases, which can be beneficial if you have significant business expenses. It also demonstrates professionalism to clients and suppliers.
What happens if I do not register?
Failure to register for VAT when required can result in significant penalties. The FTA imposes a penalty of AED 20,000 for late registration. Additionally, you may be liable for any VAT that should have been charged from the date registration was required, plus a monthly late payment penalty of 2% on outstanding tax amounts (up to 300%). Tax evasion can result in fines up to 5 times the evaded tax amount and potential imprisonment.
FTA-Aligned: Thresholds are based on UAE Federal Tax Authority regulations for 2025. Consult a registered tax agent for complex VAT registration questions.
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Disclaimer: This calculator provides estimates based on current UAE Federal Tax Authority rates and MOHRE labour law provisions. It does not constitute professional tax, financial, or legal advice. Your actual entitlements may differ depending on your individual circumstances, employment contract, and applicable free zone regulations. Always consult a qualified adviser before making financial decisions. Read our terms